Stocks to buy for long term: TCS, Infosys to Reliance — Jigar Patel of Anand Rathi picks 4 shares to buy in 2025

Stocks to buy for the long term: The Indian stock market’s benchmark index- the Nifty 50- looks set to end the calendar year 2024 with a decent gain. The index is up about 10 per cent till the previous sessions close. The frontline index has been on a bumpy track after hitting an all-time high of 26,277.35 on September 27. On a monthly scale, it lost over 6 per cent in October and almost half a per cent in November. In December so far, the index has lost over a per cent. The index is now down over 9 per cent from its record-high level.

A combination of factors, including weak Q2 earnings, stretched valuations, heavy foreign capital outflow, waning hopes of a significant rate cut by the US Federal Reserve in the current rate-reduction cycle, uncertainty surrounding President-elect Donald Trump’s trade policies, geopolitical tensions and signs of domestic growth losing some steam have been the key factors behind the recent downturn in the domestic stock market.

The Indian stock market’s performance next year will significantly depend on earring revival, Trump’s policies, and the US Fed’s interest rate trajectory.

Experts expect the Nifty 50 to see more correction in the first half of the year. Some see the index closer to 25,000 to 26,00 by the end of 2025.

Despite a hazy market outlook, experts say the market has plenty of stock-specific opportunities. Jigar S. Patel, Senior Manager of Equity Research at Anand Rathi Share and Stock Brokers, recommends buying TCS, Infosys, Reliance Industries and HDFC Bank for the next year. Here’s what the expert says:

Tata Consultancy Services (TCS) | Buying range: ₹3,600-3,550 | Target price: ₹4,400 | Stop loss: ₹3,200

The stock appears to be forming a head and shoulders pattern at the current juncture, though the neckline is yet to be breached. Declining volumes at the top suggest a loss of momentum, while the weekly RSI exhibits bearish divergence, signalling potential weakness.

Additionally, TCS has recently completed its 5-wave Elliott Wave structure, with waves A and B already in place. The pending C wave is projected to target the ₹3,600 level, which aligns with a 50 per cent retracement of the entire 5-wave structure.

“This creates a potential accumulation zone between ₹3,600-3,550 for long-term investors, with an upside target of ₹4,400. To manage risk, a stop loss below ₹3,200 on a daily closing basis is recommended,” said Patel.

Infosys | Buying range: ₹1,700-1,750 | Target price: ₹2,150 | Stop loss: ₹1,525

In 2024 so far, Infosys has delivered an impressive 50 per cent return. However, it now faces resistance. It has formed a bearish AB=CD pattern near the ₹1,950-2,000 zone, which has acted as a strong resistance over the past two to three months. 

This resistance is further supported by bearish divergence in the RSI on the weekly chart and declining volumes, both signalling a potential loss of momentum. 

“Given these factors, it is advisable to book profits on any bounce toward the ₹1,950 level and adopt a wait-and-watch approach,” said Patel.

“After the substantial rally in 2024, a correction is anticipated, with the stock likely retracing to the ₹1,700-1,750 zone within the first three to four months of 2025. At this level, fresh buying opportunities may arise, targeting an upside toward ₹2,150, with a stop loss below ₹1,525 to manage risk effectively. Patience and disciplined strategy are crucial at this stage,” Patel said.

Reliance Industries | Buying range: ₹1,700-1,750 | Target price: ₹2,150 | Stop loss: ₹1,525

Reliance Industries is trading in a support zone defined by the channel created by its 2008 and 2009 highs, as seen on the chart.

The stock has rebounded from the channel’s lower boundary in the past four instances. A bullish crab pattern with a reversal zone around ₹1,200-1,220 is evident at the channel’s lower end.

This reversal zone aligns with anchored VWAP support and bullish divergence on the daily RSI. Additionally, the fixed range volume profile from 2021 to date shows significant volume activity in the ₹1,160-1,235 zone, coinciding with the reversal area.

“Based on these confluences, a turnaround in Reliance’s price is anticipated. Investors can consider accumulating in the ₹1,185-1,250 range for an upside target of ₹1,530, with a stop loss set below ₹1,075 on a daily closing basis,” said Patel.

HDFC Bank | Buying range: ₹1,700-1,800 | Target price: ₹2,150 | Stop loss: ₹1,575

Historically, HDFC Bank has faced strong resistance in the ₹1,760-1,780 zone, with multiple reversals establishing this range as a critical supply area.

However, the stock is now sustaining above this key level, signalling potential strength. Over the past three to four months, HDFC Bank has been forming higher highs and higher lows, a positive technical pattern indicating upward momentum.

Additionally, the 12-month fixed range volume profile for 2024 highlights substantial volume accumulation in the ₹1,530-1,680 zone, reinforcing this area as a solid support base. In 2023, the stock held its point of control at ₹1,375 and subsequently rallied 40 per cent from that level.

“Investors may consider accumulating the stock in the ₹1,700-1,800 range, aiming for an upside target of ₹2,150. A stop loss below ₹1,575 on a daily closing basis is advised to manage risk. This setup offers a favourable risk-reward profile for long-term investors,” said Patel.

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Disclaimer: The views and recommendations above are those of individual analysts, experts, and brokerage firms, not Mint. We advise investors to consult certified experts before making any investment decisions.